Revenue Board to consult trade bodies before deputing sales tax officer

ISLAMABAD (June 20 2003) : Taking into account all apprehensions of the business community, the Central Board of Revenue (CBR) would consult trade bodies/associations before deputing sales tax officer at any suspected unit.

The business concerns were feeling uneasy on the insertion of section '40B' in the Sales Tax Act, 1990 whereby tax officials were empowered to monitor/production or sale of taxable goods/stocks to check the tax-evasion.

Sources said here on Thursday that the CBR has also decided not to directly depute tax officials at the suspected units.

First, the authorities would inform the association concerned about the violations committed by any unit.

The association/trade body would ask the violator to correct its records, and pay evaded amount of sales tax forthwith, they said.

However, in case, the unit ignores the warning of the association and continues the practice of tax-evasion, the CBR would depute sales tax officer at the unit as a last option, said the sources.

They said the business community particularly industrial units should not be afraid of Section 40B as the CBR would try its level best to use these powers in minimum number of cases.

The CBR would definitely give an opportunity to such units by involving associations concerned before using Section 40B of the Sales Tax Act, 1990, said the sources.

Following is the text of the amendment introduced in Sales Tax Act:

“40B-Posting of Sales Tax Officer: Subject to such conditions and restrictions, as deemed fit to impose, the Central Board of Revenue, may post Officer of Sales Tax to the premises of registered person or class of such persons to monitor production, sale of taxable goods and the stock position:

“Provided that if a Collector, on the basis of material evidence, has reason to believe that a registered person is involved in evasion of sales tax or tax fraud, he may, by recording the reason in writing, post an Officer of Sales Tax to the premises of such registered person to monitor production or sale of taxable goods and the stocks position”.

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